TRANSFORMATIONAL LEADERSHIP, KNOWLEDGE MANAGEMENT, ENTREPRENEURIAL ORIENTATION AND ORGANISATIONAL EXCELLENCE IN THE HIGHER EDUCATION INSTITUTIONS IN NIGERIA

MOHAMMED ABUBAKAR SADIQ

DOCTOR OF PHILOSOPHY UNIVERSITI UTARA MALAYSIA March, 2014

TRANSFORMATIONAL LEADERSHIP, KNOWLEDGE MANAGEMENT, ENTREPRENEURIAL ORIENTATION AND ORGANISATIONAL EXCELLENCE IN THE HIGHER EDUCATION INSTITUTIONS IN NIGERIA

BY MOHAMMED ABUBAKAR SADIQ

Thesis Submitted to Othman Yeop Abdullah Graduate School of Business, Universiti Utara Malaysia, In Fulfillment of the Requirement for the Degree of Doctor of Philosophy

PERMISSION TO USE

In presenting this thesis in fulfillment of the requirements for a Post Graduate degree from the Universiti Utara Malaysia (UUM), I agree that the Library of this University may make it freely available for inspection. I further agree that permission for copying this thesis in any manner, in whole or in part, for scholarly purposes may be granted by my supervisor(s) or in the absence, by the Dean of Othman Yeop Abdullah Graduate School of Business where I did my thesis. It is understood that any copying or publication or use of this thesis or part of it for financial gain shall not be allowed without my written permission. It is also understood that due recognition shall be given to me and to the UUM in any scholarly use which may be made of any material in my thesis. Request for permission to copy or make other use of materials in this thesis in whole or in part should be addressed to:

Dean of Othman Yeop Abdullah Graduate School of Business Universiti Utara Malaysia 06010 UUM Sintok Kedah Darul Aman

iv

ABSTRACT

The past three decades had witnessed increasing challenge to the higher education institutions especially the public-owned ones. This challenge had been for the institutions to think like the corporate enterprises towards becoming world class so as to ensure improved excellent performances. However, there had been little research on the impact of transformational leadership and knowledge management as well as the moderating role of entrepreneurial orientation on performance excellence of higher education institutions especially in Nigeria. Based on the Resource Based View and Complementary Asset Theory, this study thereby aimed to determine the significance of relationship between transformational leadership and organisational excellence, and the significance of relationship between knowledge management and organisational excellence in the public higher education institutions in Nigeria. The study further aimed to determine the moderating role of entrepreneurial orientation on the relationship between transformational leadership and organisational excellence, and on the relationship between knowledge management and organisational excellence. Data were collected from division heads in the public higher education institutions in the North-Central and South-Western geo-political zones of Nigeria. The study employed multistage sampling procedure with the use of survey questionnaires. Out of the 480 questionnaires distributed, 383 were returned with only 372 usable giving a 77.5 percent response rate. The 372 usable responses were analyzed through SPSS 20.0. Multiple regressions were used to investigate the relationships between transformational leadership, knowledge management, entrepreneurial orientation and organisational excellence. Results showed significant positive relationships between transformational leadership and organisational excellence and between knowledge management and organisational excellence. The results also showed that entrepreneurial orientation moderates the relationship between transformational leadership and organisational excellence, and that of knowledge management and organisational excellence.

Keywords: organisational excellence, management, entrepreneurial orientation

transformational

v

leadership,

knowledge

ABSTRAK

Sejak tiga dekad yang lalu, pelbagai cabaran telah timbul dalam institusi pengajian tinggi khususnya institusi awam. Cabaran ini memerlukan institusi-institusi pengajian ini berfikir secara organisasi korporat ke arah menjadikannya bertaraf dunia bagi memastikan peningkatan prestasi yang cemerlang. Namun tidak banyak kajian mengenai kesan kepimpinan transformasional and pengurusan pengetahuan serta peranan orientasi keusahawanan sebagai penyederhana terhadap prestasi kecemerlangan institusi-institusi pengajian tinggi khususnya di Nigeria. Berdasarkan Teori Berasaskan Sumber dan Teori Aset Pelengkap, kajian ini bertujuan untuk menentukan hubungan signifikan di antara kepimpinan transformasional dengan kecemerlangan organisasi dan di antara pengurusan pengetahuan dengan kecemerlangan organisasi di institusi-institusi pengajian tinggi awam di Nigeria. Kajian ini juga bertujuan menentukan peranan orientasi keusahawanan sebagai penyederhana ke atas hubungan di antara kepimpinan transformasional dengan kecemerlangan organisasi dan hubungan di antara pengurusan pengetahuan dengan kecemerlangan organisasi. Data dipungut daripada ketua-ketua bahagian di institusiinstitusi pengajian awam di bahagian Utara-Tengah dan Selatan-Barat zon geo-politik di Nigeria. Kajian ini menggunakan prosedur persampelan pelbagai peringkat melalui tinjauan soal-selidik. Daripada 480 borang soal selidik yang diedarkan, 383 telah dikembalikan dengan hanya 372 yang boleh digunakan menjadikan kadar respons sebanyak 77.5 peratus. 372 respons yang boleh guna telah dianalisis melalui SPSS 20.0. Regresi berganda telah digunakan untuk menguji hubungan-hubungan di antara kepimpinan transformasional, pengurusan pengetahuan, orientasi keusahawanan dan kecemerlangan organisasi. Dapatan kajian menunjukkan hubungan positif yang signifikan di antara kepimpinan transformasional dengan kecemerlangan organisasi dan di antara pengurusan pengetahuan dengan kecemerlangan organisasi. Selain itu dapatan kajian juga telah membuktikan peranan orientasi keusahawanan sebagai penyederhana ke atas hubungan di antara kepimpinan transformasional dengan kecemerlangan organisasi dan di antara pengurusan pengetahuan dengan kecemerlangan organisasi.

Kata Kunci: kecemerlangan organisasi, kepimpinan transformasional, pengurusan pengetahuan, orientasi keusahawanan

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ACKNOWLEDGEMENT

Alhamdu Lillahi Robil Alameen. My apprecition goes to Almighty Allah, the Giver of knowledge and Bestower of wisdom. Whosoever Allah has bestowed with wisdom, He has bestowed him with best thing in this world and the hereafter. I appreciate Him and adore Him for making this dream a success. My appreciation goes to my late parents Late Mallam Mohammed Sanni Alao and Alhaja Mohammed Juweratu Agbeke. With the demise of my father while I was around ten years old, my late mother took full charge and had been in charge till the time of her demise on 13th day of December, 2011. I pray Allah to forgive both of you and make Jannatul Firdaus your abode. Amin. My erudite, ebullient and dynamic supervisor in person of Prof. Dr. Rosli Mahmood is hereby glowingly appreciated. Your experience-based handling, avuncular treatment, fatherly support and scholarstic tutoring and mentoring have greatly contributed to the success of this programme. Thank you Prof. The outstanding sacrifice, understanding, cooperation and encouragement of my wife and children are hereby acknowledge. I specially appreciate the uncommon and unflinching support of my wife through sacrifice in taking care of our children - Kafayat, Aishat, Zainab, Hamzat, Rahmat and Juwwerat- are appreciated. The efforts of my siblings from the same mother are hereby appreciated. I appreciate the Federal Government of Nigeria for the sponsorship provided for this programme through the TETFund (Tertiary Education Trust Fund). The cooperation of the authority of the Federal Polytechnic Offa, Kwara State of Nigeria is appreciated. Furthermore, the research grant provided by the Universiti Utara, Malaysia is also appreciated. My friends, contact persons during data collection, colleagues both at the Federal Polytechnic Offa and Universiti Utara Malaysia, Nigerian faculty members and students at the UUM are appreciated. Thank you all.

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TABLE OF CONTENTS

Page No TITLE CERTIFICATION OF THESIS WORK ............................................................................ ii PERMISSION TO USE..................................................................................................... iv ABSTRACT ....................................................................................................................... v ABSTRAK ......................................................................................................................... vi ACKNOWLEDGEMENT ................................................................................................ vii TABLE OF CONTENTS ................................................................................................ viii LIST OF TABLES ........................................................................................................... xiii LIST OF FIGURES ......................................................................................................... xvi LIST OF ABBREVIATIONS ....................................................................................... xviii CHAPTER ONE: INTRODUCTION 1.1

BACKGROUND ....................................................................................................... 1

1.2

PROBLEM STATEMENT ....................................................................................... 8

1.3

RESEARCH QUESTIONS ..................................................................................... 18

1.4

RESEARCH OBJECTIVES .................................................................................... 19

1.5

SCOPE OF RESEARCH ......................................................................................... 20

1.6

SIGNIFICANCE OF RESEARCH ......................................................................... 26

1.7

DEFINITION OF TERMS ...................................................................................... 28

1.8

ORGANISATION OF THE THESIS ..................................................................... 30

CHAPTER TWO: LITERATURE REVIEW 2.1

INTRODUCTION ................................................................................................... 33 viii

2.2 ORGANISATIONAL EXCELLENCE .................................................................... 35 2.2.1: Organisational Excellence Defined..………………………………...………35 2.2.2: Historical Development of Organisational Excellence…………………...…40 2.2.3: Cores of Organisational Excellence…………………………………………44 2.2.4: Organisational Excellence Frameworks and Critique…………………….…50 2.2.5: Organisational Excellence and Stakeholders in Higher Education Institutions…………….……………………………………………..……...59 2.2.6: Impacts of Organisational Excellence on Organisation…………………..…62 2.3: TRANSFORMATIONAL LEADERSHIP ............................................................... 64 2.3.1 Transformational Leadership Defined……………………………………….64 2.3.2 Transformational Leadership Dimensions…………………………………..66 2.3.3 Transformational Leadership and Organisational Excellence………………68 2.4: KNOWLEDGE MANAGEMENT……………………………………………..…71 2.4.1 Knowledge Management Defined………………………………………....71 2.4.2 Dimensions of Knowledge Management………………………………….79 2.4.3 Knowledge Management and Organisational Excellence…..…………..…84 2.5 ENTREPRENEURIAL ORIENTATION……………………………………..…88 2.5.1 Entrepreneurial Orientation Defined……………………………………...88 2.5.2 Dimensions of Entrepreneurial Orientation…………………………….…93 2.5.3 Entrepreneurial Orientation and Organisational Excellence……….……..97 2.5.4 Entrepreneurial Orientation as a Moderator…………..……………….…99 2.6 UNDERPINNING THEORIES AND THEORETICAL FRAMEWORK….…103 2.6.1 Introduction……………………………………………………………...103 2.6.2 Resource-Based View (RBV)………………………………….……..…103 ix

2.6.3 Theory of Complementary Assets………..……………………………..….107 2.6.4 Hypothesised Theoretical Framework for the Research………….…..……108 2.7 CONCLUSION………………………….………………………………….…….110 CHAPTER THREE: METHODOLOGY 3.1

INTRODUCTION…………………………..…………………………………..111

3.2

RESEARCH FRAMEWORK……………….………………………………….111 3.2.1 Review of the Philosophical Divides in Social Science Research………...112

3.3

STATEMENT OF RESEARCH HYPOTHESES ............................................... 115

3.4

OPERATIONALISATION OF VARIABLES .................................................... 117

3.5

MEASUREMENT OF VARIABLES/INSTRUMENTATION .......................... 117

3.6

DATA COLLECTION ......................................................................................... 122

3.7

POPULATION OF STUDY.................................................................................. 126

3.8

SAMPLING ........................................................................................................... 128

3.9

DATA COLLECTION PROCEDURES .............................................................. 129

3.10 TECHNIQUES OF DATA ANALYSIS .............................................................. 130 3.11 TEST OF VALIDITY AND RELIABILITY....................................................... 131 3.12 CONCLUSION .................................................................................................... 132 CHAPTER FOUR: RESULTS AND DISCUSSION 4.1

INTRODUCTION ................................................................................................. 133

4.2

SURVEY RESPONSES ........................................................................................ 133

4.3

NON-RESPONSE BIAS ....................................................................................... 136

4.4

DATA CLEANING ............................................................................................... 140 4.4.1 Detection of Error and Missing Data………..………………………………...141 4.4.2 Outliers…………………………………………….……………………………..145 x

4.5 DESCRIPTIVE STATISTICS - PROFILES OF RESPONDENTS ...................... 149 4.6 ASSUMPTIONS OF MULTIPLE REGRESSIONS ............................................. 154 4.6.1 Normality………………………………………...………………………….154 4.6.2 Linearity……………………………………………..……………..……….156 4.6.3 Homoscedasticity………………………………………..…………..……..158 4.6.4 Multicollinearity……………………………………………..………..……159 4.7 FACTOR ANALYSIS ............................................................................................ .161 4.7(a) Factor Analysis for the Variables…………………………………………..164 4.7(b) Reliability Test……………………………………………………………..177 4.8 CORRELATION TEST .......................................................................................... 178 4.9 MULTIPLE REGRESSIONS (TEST OF HYPOTHESES)……………………...184 4.9(a) Moderation and Regression Analysis .......................................................... 184 4.9(b) Answers to Research Questions…………………………………...……… 187 4.9(c) Determining the significance of variance due to the interaction effect….. 192 4.9(d) Determination of Contribution of each Variable to the Final Equation….. 193 4.9(e) Test of Hypotheses…………………………………………………......... 196 4.9(f) Graphing the Moderation Effects…………………………………………. 198 4.10 SUMMARY ............................................................................................................ 200 CHAPTER FIVE: CONCLUSIONS AND RECOMMENDATIONS 5.1

INTRODUCTION ................................................................................................. 202

5.2

RECAPITULATION OF THE STUDY‟S FINDINGS ........................................ 202

5.3

DISCUSSION OF FINDINGS .............................................................................. 203 5.3.1 First Objective……………………………………………………………..205 5.3.2 Second Objective………………………………………………………….207 xi

5.3.3 Third Objective………………………………………………………..…....210 5.3.4 Fourth Objective……………………………………………………..…..…212 5.4 IMPLICATIONS OF THE STUDY ....................................................................... 214 5.5 THEORETICAL CONTRIBUTIONS .................................................................... 216 5.6 IMPLICATIONS TO PRACTICE .......................................................................... 218 5.6.1 Policy Makers…………………………………………………………….…218 5.6.2 Higher Education Institutions……………………………………….………220 5.7 LIMITATIONS OF THE STUDY .......................................................................... 223 5.8 SUGGESTIONS FOR FUTURE RESEARCH ...................................................... 224 5.9 CONCLUSION....................................................................................................... 226 REFERENCES ............................................................................................................. 227 APPENDICES ............................................................................................................... 259

xii

LIST OF TABLES

Table 1.1: Nigerian Higher Education Institution by Geo-Political Zones ..................... 22 Table 1.2: Nature of the Organisation Structure in Higher Education Institution in Nigeria ......................................................................................................... 25 Table 2.1: Stakeholder Categories and Constituent Groups…………………………….61 Table 3.1: Operationalisation of Measurement Variables……………………………...120 Table 3.2: Cadre of Academic Staff in Nigerian Universities, Polytechnics and Colleges of Education………………..………………………………………….…127 Table 3.3: Faculty Staff in Nigerian Higher Education Institutions……………………127 Table 4.1: Summary of the Questionnaire and the Response Rate ................................ 135 Table 4.2a : Group Statistics for Early and Late Responders in Nonresponse Bias Test ......................................................................................................................... 138 Table 4.2b: Independent Samples T-Test for Equality of Variance for Early and Late Responders ............................................................................................................. 139 Table 4.3a: Descriptive Statistics on Total Score of Organisational Excellence .......... 146 Table 4.3b: Descriptive Statistics on Total Score of Transformational Leadership ...... 147 Table 4.3c: Descriptive Statistics on Total Score of Knowledge Management ............ 148 Table 4.3d: Descriptive Statistics on Total Score of Entrepreneurial Orientation ........ 148 Table 4.4Profile of the Respondents on Age ................................................................ 150 Table 4.5a: Pearson Correlation Statistics for the Variables .......................................... 160 Table 4.5b; Collinearity Statistics Showing the Tolerance Values and Variance Inflation Factor ................................................................................................ 161 Table 4.6a: Factor Analysis for Organisational Excellence .......................................... 165 Table 4.6b: Summary Of Organisational Excellence Variable Before And After Item Deletion ........................................................................................................ 167 Table 4.7a : Factor Analysis for Transformational Leadership ..................................... 168 xiii

Table 4.7b: Summary of Transformational Leadership Variable Before and After Item Deletion ......................................................................................................... 170 Table 4.8a: Factor Analysis for Knowledge Management ........................................... 171 Table 4.8b: Summary Of Knowledge Management Without Item Deletion ................. 173 Table 4.9a: Factor Analysis for Entrepreneurial Orientation ........................................ 174 Table 4.9b: Summary of Entrepreneurial Orientation Variable Before and After Item Deletion ........................................................................................................ 176 Table 4.10: Reliability Analyses ................................................................................... 177 Table 4.11: Cohen and Pallant Guideline of Correlation Strenght ............................... 179 Table 4.12: Pearson Correlations for Independent Variable and Dependent Variable 179 Table 4.13: Squared Correlation of the Variable to get the Coefficient of Determination ......................................................................................... 181 Table 4.14a: Partial Correlation of Transformational Leadership and Organisational Excellence Controlling for the Effect of Entrepreneurial Orientation . 183 Table 4.14b: Partial Correlation of Knowledge Management and Organisational Excellence Controlling for the Effect of Entrepreneurial Orientation . 184 Table 4.15: Scenarios of Analysis for Mediation and/or Moderation by Baron and Kenny (1986) ................................................................................................ 185 Table 4.16: ANOVA Output Depicting the Relationship between Transformational Leadership and Organisational Excellencea ......................................................... 187 Table 4.17: ANOVA Output Depicting the Relationship Between Knowledge Management and Organisational Excellencea .................................................................. 188 Table 4.18: Anova Output Depicting the Moderation of Relationship Between Transformational Leadership and Organisational Excellencea by Entrepreneurial Orientation ....................................................................................... 189 Table 4.19: ANOVA Output Depicting the Moderation of Relationship Between Knowledge Management and Organisational Excellencea by Entrepreneurial Orientation ....................................................................................... 191 xiv

Table 4.20a: Significance of Variance of Organisational Excellence d Due to Interaction of Entrepreneurial Orientation and Transformational Leadership .............. 192 Table 4.20b: Significance of Variance of Organisational Excellenced Due to Interaction of Entrepreneurial Orientation and Knowledge Management ..................... 193 Table 4.21a: Summary of Contributions of Each Variable to the Final Equation of Transformational Leadership, Entrepreneurial Orientation and Organisational Excellencea ......................................................................................................................................... 194 Table 4.21b: Summary of Contributions of Each Variable to the Final Equation of Knowledge Management, Entrepreneurial Orientation and Organisational Excellencea ......................................................................................................................................... 195 Table 4.22: Summary of the Hypotheses Tested by Using Regression ........................ 197 Table 4.23a: Data to Visualize the Conditional Effect of Transformational Leadership on Organisational Excellence (Based on Process by Hayes, 2014) ........... 198 Table 4.23b: Data to Visualize the Conditional Effect of Knowledge Management on Organisational Excellence (Based on Process by Hayes, 2014) .................................... 199

xv

LIST OF FIGURES

Figure 2.1: Baldrige Education Criteria for Performance Excellence Framework ......... 51 Figure 2.2: European Foundation for Quality Management (EFQM) Business Excellence Model (Initial- Madrib 1991 and Final 1992) ................................ 53 Figure 2.3:European Foundation for Quality Management (EFQM) Business Excellence Model (Latest) ................................................................................ 54 Figure 2.4: EFQM Values as 8 Fundamental Concepts of Excellence ........................... 55 Figure 2.5: Business Excellence Framework, Malaysia .................................................. 57 Fig 2.6: Hypothesised Model of Moderating Impact of Transformational Leadership, Knowledge Management on Organisational Excellence ............................................... 110 Figure 4.1: Scree Plot for Organisational Excellence ................................................... 166 Figure 4.2: Scree Plot for Transformational Leadership ............................................... 169 Figure 4.3: Scree Plot for Knowledge Management ..................................................... 172 Figure 4.4: Scree Plot for Entrepreneurial Orientation ................................................. 175 Figure 4.5: Interaction Effect Between Transformational Leadership and Organisation Excellence ................................................................................................. 199 Figure 4.6: Interaction Effect Between Knowledge Management and Organisation Excellence ................................................................................................. 200 Figure 4.8: Revised Model of Moderating Impact of Transformational Leadership, Knowledge Management on Organisational Excellence ........................... 205

xvi

LIST OF ABBREVIATIONS

ANOVA:

Analysis of Variance

ASUP:

Academic Staff Union of Polytechnics

ASUU:

Academic Staff Union of Universities

CAE:

Canada Award of Excellence

CBN:

Central Bank of Nigeria

CEO:

Chief Executive Officer

COEASU:

Colleges of Education Academic Staff Union

EFQM:

European Foundation for Quality Management

FGN:

Federal Government of Nigeria

FME:

Federal Ministry of Education

HEI:

Higher Education Institution

JUSE:

Union of Japanese Scientists and Engineers

KMO:

Kaiser-Meyer-Olkin

MBNQA:

Malcolm Baldrige National Quality Award

MPC:

Malaysian Productivity Corporation

MSA:

Measure of Sampling Adequacy

NBS:

National Bureau of Statistics

NBTE:

National Board for Technical Education

NCCE:

National Commission for Colleges of Education

NGO(s):

Non-Governmental Organisation(s)

NPC:

National Productivity Council (Malaysia)

NPE:

National Policy on Education xvii

NUC:

National Universities Commission

PCA:

Principal Component Analysis

PMQA:

Prime Minister Quality Award

SSS:

Senior Secondary School

TETFund:

Tertiary Education Trust Fund

TQM:

Total Quality Management

UNN:

University of Nigeria, Nsuka

xviii

CHAPTER ONE INTRODUCTION 1.1

BACKGROUND

The importance of quality products had long been acknowledged through the efforts of Union of Japanese Scientist and Engineers (JUSE) and through the publication of In Search of Excellence by Peters and Waterman (1982). This strive towards excellence had been further encouraged through the establishment of excellence awards by countries and organisations. These awards were in form of the Deming Prize in Japan, Malcolm Baldrige National Quality Improvements Act of 1987 in America and the European equivalent in form of European Foundation for Quality Management (MBNQA Act, 1987; EFQM, 2014). To underscore the importance of excellent performances, other countries of the World had also adapted the excellence awards systems mentioned above as organisations were expected to display excellent performances for the benefit of all stakeholders (Klefsjö, Bergquist & Garvare, 2008; Talwar, 2011). Many countries of the world had being putting measures in place towards ensuring World Class status and performances for organisations that operate in them. Higher education institutions were not excluded from this search for excellent performance. To be able to achieve the primary aim of its establishment, every organization, either in the manufacturing or service industry (higher education institutions inclusive) must aim at ensuring excellent performances in its activities. The need for continuous improvements, especially in the higher education institutions, was more necessary with

The contents of the thesis is for internal user only

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